bargain alright just picked up some on close. another...

bargain alright just picked up some on close.
another undervalued co with high cash + profitable.
as noted by other posters, a highly distrusted stock (plummeted from dizzy heights of $5).

a bargain to me. heres a summary of PTD

170mil AUD GSK sale
40mil AUD cash (pre sale)
-------
210 mil AUD in CASH
20mil AUD NPAT till 2010
(assuming NPAT 5mil pa as per 2006 from royalties - current brokers have higher estimates)

230mil AUD CASH ( excluding tax on domantis sale)

market cap 164 x 1.59 = 260.75 mil

Enterprise Value of 30 mil includes:
1. Animal health business
2. TNF patents
3. recent acquisitions - promics, bioscepter JV

----------------
it sold 33% of domantis to GSK for 170mil AUD - valuing Domantis at 510 mil AUD.
with Peptechs anti TNF products alone in the pipeline im sure its worth more than 30mil.

SHORT TERM upside:

1. dividend (PLUS highly probably CASH BACK with 210mil in the kitty) - note it paid 8c in 2006.
assuming 10c for 2007 - thats 6.2% at 1.59.


other points to note:
1. directors been topping up
2. biggest shareholder (>3bil in funds under management) paid 1.72 for PTD in dec after announcement of GSK deal - > 4mil shares purchased


BEFORE GSK announcement
PTD was trading at 1.2-1.25 valuing PTD at 200mil with cash of 40mil. so market valued domantis + all else at 160mil.
now GSK paid 170mil for Domantis. - where all that value attributed to "all else" ? to me the price has not caught up with value yet. Can someone provide technical analysis please?thanks. i bought half of what i wanted to buy today. we will see...